USD/JPY Holds Steady Amid US Rate Hike Bets and Japanese Intervention Risk

The USD/JPY currency pair has been hovering around the 157.40 level, experiencing little change on Tuesday.

This stability is due to a delicate balance between expectations of further US monetary tightening and caution over potential Japanese intervention.

Japan's Finance Minister Satsuki Katayama stated that an undervalued yen is generally problematic, emphasizing the need for bilateral cooperation with the US.

The Bank of Japan has been tightening its policy cycle, lifting its benchmark rate to 1.25% on September 18, and MUFG expects further hikes, citing a roughly 36% probability of a back-to-back move next month.